Accurate Real Estate Appraisal Services, Inc.

An appointment has been set for your appraiser to come to your home.  No need to stress!  We appraisers understand that it can be awkward to have someone come into your home especially if it’s your first appraisal inspection.  We'd like to ease your stress by giving you some information about what to expect when an appraiser comes for an inspection.

1. Access:  You will need to provide access to all areas of your home. The appraiser has been asked by the lender/client to perform an appraisal of your property.  The appraiser will need to inspect both the interior and the exterior of your home.  The appraiser is required to inspect all rooms including, the garage, basement, utility and possibly the attic. The appraiser will take pictures and write notes about his/her observations.

2. Information:  You can provide the appraiser with some information that would be helpful. Make a list of any updates/improvements that have been done to your property and approximately when they were done. 

3. Time:  Depending on the size of your home and if you have additional buildings the inspection could take anywhere for 20 minutes to 2 hours for larger complex properties.  You do not have to be with the appraiser the entire time in fact you can just have an initial meeting and then follow up when the appraiser is ready to leave.

4. Pets: If you have any pets that might not be friendly please secure them during the inspection as the appraiser will need to inspect the entire perimeter of the house and any outbuildings.                                                                                                                                                                      

5. Expectations:  You can expect the appraiser to take lots of pictures of the interior and exterior of the property.  The appraiser will also measure your home plus any additional buildings, barns, etc. The appraiser may have a few questions, to confirm some of the data he/she has already researched about your property.  The appraiser will not be able to give you a value at the time of the inspection.  The appraiser cannot give a value until the entire appraisal process has been completed.  The inspection is a part of the process then additional research and analysis is needed before a value of opinion can be rendered. 

Please note the appraisal inspection is not the same as a home inspection. 

 Appraisal Inspection vs. Home Inspection

What is the difference between an appraisal inspection and a home inspection?  Often buyers and sellers may mistake one for the other but they are in fact two very separate inspections with separate purposes. 

Similarities: 

* Performed by Licensed Professionals

* Involve a physical examination of the property

* Present a written report  

Even though these two seem very similar they are very different in their purpose and function.  

Home Inspection:  

*Purpose is for buyers and sellers to be well informed about the condition of a home and the operational systems within it.  

*A home inspector will physically inspect the home and report on it. 

Per American Society of Home Inspectors:  

“The standard home inspector’s report will cover the condition of the home’s heating system; central air conditioning system (temperature permitting); interior plumbing and electrical systems; the roof, attic and visible insulation; walls, ceilings, floors, windows and doors; the foundation, basement and structural components.”  

* A home inspection is used by buyers or sellers to determine if there are any problems or potential hazards with a home that might require repair prior to a sales transaction.

* A home inspection can protect both buyers and sellers.

* A home inspection report does not include a market value.

* A home inspector is hired by a buyer or seller.  Realtors can often recommend reliable home inspectors.  

Appraisal Inspection: 

* The purpose of appraisals are to determine market value of a property. Appraisals are typically ordered by a lender if a mortgage is to be involved in a sales transaction or refinance.

* The appraiser will inspect the property. Similar to a home inspector an appraiser will also inspect a home and observe the overall condition of the home, the heating/cooling systems, roof, attic, walls, ceilings, floors,etc..  Although an appraiser inspects these items for their general overall condition, an appraiser is not trained in determining the how the systems function and how they fail.

* Appraisers determine the overall condition of a property and notes the features and then compares them to similar properties in the market in order to determine market value.  

* Appraisers are hired by lending institutions to determine market value of the property.  They are sometimes hired by sellers to perform pre-listing appraisals to know the market and aid in determining listing price.

* Sometimes the appraiser, especially an FHA appraiser, will determine repairs needed to bring a home to similar market condition or to meet minimum FHA standards.  However, appraisers are not licensed inspectors and are limited in what they can determine in repairs.  FHA appraisers are trained to inspector for only FHA minimum property requirements.   

“An appraiser inspected the property that I am purchasing and reported in to be in good condition, why would I also need a home inspection?” 

The appraisal inspection only reports what can be seen.  An appraiser does not typically test for functionality of systems and cannot determine the potential hazards or malfunctions that a licensed home inspector can. A home inspection helps both buyers and sellers to make informed decisions.  A home inspection can give a buyer or seller peace of mind in knowing that the property is in working order and posed no unknown hazards.   Even though an appraisal inspection has been performed a home inspection is advisable for buyers and sellers to make informed decisions regarding a purchase transaction.  

We hope this helps in explaining the difference in an appraisal inspection and a home inspection.